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T-Mobile Woos Business Customers with New Pricing Plans - Analyst Blog

After transforming the way customers buy phones and wireless services, T-Mobile US, Inc.TMUS - the fourth-largest national telecom company in the U.S. - now aims to revolutionize the business market with its Un-carrier 9.0 initiative. With this new plan, the carrier seeks to provide business customers with transparent pricing and additional new benefits for businesses of all sizes.

As part of this effort, T-Mobile has rolled out various promotions, and cellular and data plans for business customers. Particularly, with its new program Un-carrier for Business, the carrier is looking to specifically lure business customers by improving its network coverage and offering simplified plans.

Per the new program, businesses with less than 20 lines will have to pay $16 per line and those with multiple lines (over 20) will be charged at $15 a line. At the same time, companies with more than 1,000 lines will be required to pay only $10 per month for each line. Notably, every connection will come with 1 GB of data and will permit unlimited calls and text messages.

Moreover, the carrier is offering each business client a free GoDaddy.com domain and website coupled with email and other tools from Microsoft's Office 365 Business Essentials.

In addition, the company has also initiated major discount programs for families of business subscribers opting to be part of this service. Under its new Business Family Discounts, the carrier will consider the company-paid line as the first line on a family plan. The switch will allow up to a remarkable 50% savings for customers using T-Mobile's Simple Choice family plan.

Further, T-Mobile has also offered to pay up to $650 to cover payments outstanding on devices for customers who switch to its connections. Turning to the consumer market, the company has announced that it will not hike rates offered to customers in the course of its promotions.

Interestingly, with these new plan announcements, T-Mobile is aiming to establish itself in the lucrative business market segment which has for long been dominated by its larger rival wireless carriers - Verizon Communications Inc. VZ and AT&T Inc. T .

T-Mobile's bid to entice rival carriers' business customers reflects the cutthroat competition that is typical of the U.S. cellular market, leaving little scope for new subscriber growth. Thereby, the dominant players are forced to look for growth by poaching each other's existing subscribers.

T-Mobile currently has a Zacks Rank #3 (Hold). A better-ranked stock worth considering in this industry over the near term is United States Cellular Corp. USM which holds a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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